01
Choose one
1 point
A small producer wants to test whether customers in another country will buy its product while keeping its initial investment relatively low. Which entry mode best fits this goal?
Free Practice Quiz Question List
6 Multinational Firms and Market Entry Online Quiz Questions
Use this free practice quiz with 20 questions to review 6 Multinational Firms and Market Entry, test your knowledge, and prepare for your next test or exam.
20 questions
02
True or false
1 point
A greenfield investment creates a new foreign operation from the ground up.
- A
True
- B
False
03
Fill in the blank
1 point
Investment in an enterprise in another country intended to create a lasting interest and significant influence in its management is called .
04
Written response
1 point
Which entry mode allows a foreign business to use a firm's intellectual property, such as a patent or trademark, in return for fees or royalties?
05
Choose one
1 point
A company wants to expand abroad by allowing local operators to use its brand and business format while following operating requirements and receiving continuing guidance. Which entry mode best matches this plan?
- A
Exporting
- B
Licensing
- C
Franchising
- D
Acquisition
06
True or false
1 point
True or false: Under common international statistical practice, ownership of at least 10% of voting power is evidence of a direct-investment relationship, but it does not necessarily mean the investor has full control.
- A
True
- B
False
07
Choose all
1 point
A firm is comparing entry modes for a new country. Which factors should it consider? Select all that apply.
- A
The target market's size and growth
- B
Whether the firm can avoid assessing local rules
- C
Trade and investment rules
- D
The strength of intellectual-property protection
- E
Whether the firm can ignore its capacity to manage overseas operations
08
Fill in the blank
1 point
A business with a parent company in one country and one or more foreign affiliates is a .
09
Written response
1 point
What is the name for an investment that creates a new foreign operation from the ground up?
10
Choose one
1 point
A firm wants to enter a foreign market by buying an existing local business so it can gain access to that business's staff, customers, and facilities. Which approach is it choosing?
- A
Licensing
- B
Exporting
- C
Greenfield investment
- D
Acquisition
11
Choose all
1 point
Which statements accurately describe a wholly owned subsidiary as a foreign-market entry mode? Select all that apply.
- A
It is owned entirely by the entering firm.
- B
It requires less investment than exporting in every case.
- C
It can provide substantial control.
- D
It can expose the firm to more operating and market risk.
12
Open ended
1 point
A firm wants local knowledge and a foreign partner's resources, and it is willing to share ownership and decision-making. Which entry mode could fit these priorities? Explain one benefit and one trade-off.
13
Choose one
1 point
A company wants a direct local presence and substantial control over its foreign operation, and it is prepared to commit more investment and accept greater operating risk. Which entry mode best fits those priorities?
- A
Strategic alliance
- B
Wholly owned subsidiary
- C
Licensing
- D
Exporting
14
Choose one
1 point
A small food producer wants to learn whether customers in another country will buy its product before committing substantial resources there. It plans to keep production at home and use a local distributor. Which entry mode best fits this plan?
- A
Export through a local distributor
- B
Establish a wholly owned subsidiary
- C
Acquire a local competitor
- D
Form an equity joint venture
15
Choose one
1 point
Which situation makes a business a multinational enterprise rather than simply a firm that sells abroad?
- A
A firm that sells its products abroad through independent buyers
- B
A firm that ships products abroad but has no foreign operations
- C
A firm with a parent company in one country and a foreign affiliate
- D
A firm that buys imported supplies but operates only in its home country
16
Choose one
1 point
A restaurant chain lets a foreign operator use its brand and business format, provides ongoing guidance, and sets operating requirements. Which entry mode is this?
- A
Licensing, because the arrangement is primarily for using a patent or technology
- B
Franchising, because the operator uses a business format and brand with ongoing guidance
- C
Exporting, because products are made in one country and sold in another
- D
Acquisition, because the firm buys an existing foreign business
17
Choose one
1 point
A manufacturer enters a foreign market by buying a local company, gaining access to its existing employees, customers, and facilities. Which form of investment is it using?
- A
Acquisition
- B
Greenfield investment
- C
Exporting
- D
Licensing
18
True or false
1 point
True or false: International statistics commonly treat ownership of at least 10% of voting power as evidence of a direct-investment relationship, but that threshold does not necessarily mean the investor has full control.
- A
True
- B
False
19
Written response
1 point
What is the term for an investment that creates a new foreign operation from the ground up?
20
Written response
1 point
What market-selection consideration concerns whether a firm can safeguard its patents, technology, or trademarks in a target country? Enter the hyphenated two-word term.